Corporate Name Endings
* The name must contain word “corporation,” “incorporated,”
“company,” or limited” or an abbreviation; may not contain
language stating or implying that the corporation is organized for
other purposes; must be distinguishable from names in use by
certain other enumerated entities.
Articles of Incorporation Requirements
- Minimum Number – Not less than three, unless there is only one or two shareholders of record; then the number of directors may be less than three but not less than number of shareholders.
- Residence Requirements. – No provision.
- Age Requirements – None.
- Directors are not required to be listed in the articles of incorporation.
- The officers are not required to be listed in the articles of incorporation.
- An increase in shares or par value does not effect initial fees.
- The annual statement, call the Franchise Tax Report is due by June 1.
- The amount is 0.27% of the proportion of its capital stock multiplied by ratio of corporation’s property in Arkansas to its total property. Minimum tax, $50; maximum $1,075,000. Corporations without authorized capital stock, pay $100. No par shares are valued at $25 each.
Income Tax Rate
- On net income attributable to business in Arkansas: $3,000 of net income, 2%; next $5,000, 3%; next $14,000, 5%; next $75,000, 6%, above $100,000, 6.5%.
For more information on taxes, visit www.ark.org/dfa
- Shareholders have limited liability protection
- May be listed and traded as a publiccorporation on the stock market or “over the counter”
- Has a separate and independent tax status from its owners
- Profits are not subject to “double taxation”
- Corporate losses may be “passed through” to share holders
- Shareholders are afforded the same protection as C Corp.
- Contains characteristics of both corporation and partnership
- Shareholders may take advantage of “Pass-Through” taxation
- Limited liability for share holders
Not for profit corp
- Eligible for tax-exempt status
- Limited Liability protection
- Qualify for public and private gains